OKX CEO Star Xu Slams Huione Group After $15B DOJ Crackdown
OKX founder and CEO Star Xu has condemned the controversial Cambodian monetary conglomerate, Huione Group, and mentioned the entity has “triggered severe harm within the crypto area” whereas stressing that the change maintains strict compliance controls to forestall any affiliation with it.
Xu’s assertion got here shortly after an enforcement motion led by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) on October 14, in coordination with the UK’s Foreign, Commonwealth, and Development Office (FCDO).
Huione Group Hit by Sanctions
The joint operation targeted large-scale rip-off networks throughout Southeast Asia, and designated the Prince Group Transnational Criminal Organization (TCO) and 146 associates for his or her roles in crypto-enabled fraud, illicit mining, and world cash laundering actions.
As a part of the sanctions, the UK’s Office of Financial Sanctions Implementation (OFSI) additionally blacklisted Byex Exchange after discovering its ties to Jin Bei Group Co. Ltd and the Prince Group. Huione Group, which was beforehand flagged by FinCEN in May, has now been formally labeled as a “main cash laundering concern” underneath Section 311 of the USA PATRIOT Act. This designation successfully cuts it off from the US monetary system.
The crackdown intensified because the US Department of Justice (DOJ) unsealed felony fees in opposition to Chen Zhi, often known as “Vincent,” who occurs to be the founder and chairman of Prince Holding Group.
Alongside the indictment, the DOJ filed a whopping $15 billion civil forfeiture case tied to roughly 127,000 BTC allegedly generated by way of the group’s in depth community of fraudulent crypto operations.
From Huione to Tudou
Huione Group’s subsidiary, Huione Guarantee, the Telegram-based market which was later rebranded as “Haowang Guarantee,” facilitated over $24 billion in transactions since its inception in 2021 to January 2025.
Before its shutdown in May, Huione expanded its digital ecosystem by launching a number of blockchain-based instruments, together with USDH, a US dollar-backed stablecoin designed to sidestep conventional regulatory controls. It additionally developed a decentralized change, a proprietary pockets, and the ChatMe communication platform modeled after Telegram. The group created a closed ecosystem that allowed inner transfers whereas minimizing publicity to regulatory oversight.
Since its closure, felony networks have moved to a different Telegram-based market, Tudou Guarantee, which was found to have absorbed a big share of its predecessor’s transactions.
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